Garmin and TomTom have settled their intellectual property suits that were pending in the U.S., UK and the Netherlands. The settlement may enable both firms to divert more resources and attention on another battle: fighting for the right to acquire Tele Atlas, a digital map publisher.
CAYMAN ISLANDS/November 15, 2007/PR Newswire - Garmin Ltd. announces today a confidential global settlement of all of its intellectual property litigation with TomTom. The settlement resolves all of the pending intellectual property litigation including cases in the UK, Netherlands, Wisconsin, and Texas. The parties did not disclose details of their agreement.
Garmin, based in the Cayman Islands but with operational headquarters in Olathe, Kan., makes products that use global positioning system data and leads the market for navigation devices in the U.S.
TomTom, based in Amsterdam, is the European leader in similar devices.
Garmin sued TomTom in federal courts in Wisconsin and Texas, claiming it infringed on Garmin patents. And Garmin asked courts in the Netherlands and United Kingdom to invalidate registered designs and patents claimed by TomTom.
TomTom countersued in Wisconsin, claiming Garmin infringed on three patents TomTom bought from Horizon Navigation Inc., based in Santa Clara, Calif., which makes in-vehicle navigation devices.
A year ago, Garmin won the first round when a court in The Hague, Netherlands, refused TomTom’s request for a preliminary injunction against Garmin for allegedly copying a European registered design it owned.
The lawsuits were seen as an ill-time distraction for both companies. They come at a time when the GPS market is growing rapidly and reaching critical mass in many developed markets.
Earlier this year, Garmin overtook TomTom for the global market share lead in delivering GPS systems, shipping 1.85 million units in the second quarter, a 25 percent global market share, according to research firm Canalys.
TomTom was close behind, with 1.81 million GPS systems shipped, a market share of 24 percent. Those two were far ahead of the rest of the pack, with the top five rounded out by Mio Technology, Magellan and Navman. In Europe, TomTom has 30 percent of the market and Garmin about 17 percent. Garmin has long led in the U.S. with more than 50 percent market share.
Tele Atlas is the last remaining independent publisher of the digital maps that power GPS systems following Nokia’s purchase last month of Navteq in a deal worth $8.1 billion. More at Garmin.